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Global Imports of Bitumen and Asphalt Fall Despite Increased Supplies to China and the U.S.

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Archives, Global Trade Daily, News

Global Imports of Bitumen and Asphalt Fall Despite Increased Supplies to China and the U.S.

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IndexBox has just published a new report: ‘World – Natural Bitumen And Natural Asphalt – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

Global imports of bitumen and asphalt went down by -15% y-o-y to 2.1M tonnes in 2020. In value terms, imports dropped to $918M. America holds leadership in global imports of bitumen and asphalt. The U.S., Romania, China and France were among the few countries that managed to ramp up import supplies. The average bitumen and asphalt import price grew by +15% y-o-y to $427 per tonne in 2020. Indonesia dominates the Chinese imports, while Greece, Canada and Spain provide the bulk of bitumen and asphalt imported to the U.S. 

Global Imports of Bitumen and Asphalt

Global bitumen and asphalt imports dropped rapidly to 2.1M tonnes in 2020, down by -15.2% against the previous year’s figure. In value terms, bitumen and asphalt imports dropped from $943M in 2019 to $918M (IndexBox estimates) in 2020.

The U.S. (578K tonnes), distantly followed by Saudi Arabia (275K tonnes), Egypt (193K tonnes), France (185K tonnes), Canada (174K tonnes), and China (168K tonnes) were the key importers of bitumen and asphalt, together creating 73% of total imports. The following importers – the UK (92K tonnes), Myanmar (72K tonnes), Romania (51K tonnes) and Viet Nam (48K tonnes) – together made up 12% of total imports.

The U.S., Romania, China and France managed to increase their import volume. Most other countries reduced the purchases from abroad.

In 2020, the U.S., China and Romania featured the highest growth rates regarding import volume. American bitumen and asphalt imports rose from 378K tonnes to 578K tonnes in 2020. Over the same period, China boosted purchases from 112K tonnes to 168K tonnes. Last year, Romania doubled its import volume of bitumen and asphalt, while France saw an 8.4%-increase in supplies from abroad.

In value terms, the largest bitumen and asphalt importing markets worldwide were Saudi Arabia ($320M), the U.S. ($178M) and Egypt ($120M), with a combined 67% share of global imports. France, Canada, Viet Nam, Myanmar, China, Romania and the UK lagged somewhat behind, together comprising a further 21%.

The average bitumen and asphalt import price stood at $427 per tonne in 2020, with an increase of +15% against the previous year. There were significant differences in the average prices amongst the major importing countries. In 2020, Saudi Arabia was the country with the highest price, while the UK was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Egypt, while the other global leaders experienced more modest paces of growth.

Major Suppliers of Bitumen and Asphalt to the U.S.

Greece (166K tonnes), Canada (152K tonnes) and Spain (83K tonnes) are responsible for 81% of total American imports. Turkey (44K tonnes) ranks fourth among the leading suppliers of bitumen and asphalt to the U.S.

In value terms, the largest bitumen and asphalt suppliers to the U.S. are Greece ($53M), Canada ($42M) and Turkey ($38M), together comprising 74% of total imports.

Major Suppliers of Bitumen and Asphalt to China

Indonesia (84K tonnes) dominates the Chinese imports with a 75%-share of the total volume. Malaysia (17K tonnes) and Canada (11K tonnes) follow Indonesia.

In value terms, Malaysia ($5.6M), Canada ($5.2M) and Indonesia ($3.9M) are the largest bitumen and asphalt suppliers to China, with a combined 96% share of total imports.

Major Suppliers of Bitumen and Asphalt to Romania

Poland (33K tonnes) constitutes the largest bitumen and asphalt supplier to Romania, with a 64% share of total imports. Moreover, bitumen and asphalt imports from Poland exceed the figures recorded by the second-largest supplier, Greece (7.7K tonnes), fourfold. Austria (6.3K tonnes) ranks third in terms of total imports with a 12% share.

In value terms, Poland ($9.6M) is the largest supplier of bitumen and asphalt to Romania, comprising 59% of total imports. The second position in the ranking is occupied by Austria ($3M), with an 18% share of total imports. It was followed by Greece, with a 13% share.

Source: IndexBox Platform

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Archives, EU Trade, Global Trade Daily, News

European Brown Rice Imports Surge to Record High

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IndexBox has just published a new report: ‘EU – Rice – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2020, European imports of husked brown rice jumped nearly by +6% y-o-y to 1.1M tonnes, reaching the highest level over the past decade. Belgium, the Netherlands, Portugal, Spain, France, Italy and Poland were the largest brown rice importers, constituting more than two-thirds of total imports in the EU. Poland, Belgium and the Netherlands featured the highest growth rates regarding brown rice purchases among the key importers. Last year, total rice imports in the EU grew by +10% y-o-y to 3.5M tonnes. 

European Imports of Husked Brown Rice

In 2020, brown rice imports in the EU rose markedly to 1.1M tonnes, growing by +5.9% on the previous year’s figure. In value terms, brown rice imports jumped by +9.9% y-o-y $764M.

The purchases of the seven major importers of husked brown rice, namely Belgium (243K tonnes), the Netherlands (179K tonnes), Portugal (135K tonnes), Spain (100K tonnes), France (100K tonnes), Italy (86K tonnes) and Poland (78K tonnes), represented more than two-thirds of total imports. It was distantly followed by Germany (68K tonnes), comprising a 6.3% share of total imports.

In 2020, Poland (+29.0% y-o-y) saw the most notable growth rate of purchases amongst the key importing countries. Belgium (+11.0% y-o-y), the Netherlands (+10.5% y-o-y), Portugal (+9.3% y-o-y), Spain (+6.1% y-o-y) and Germany (+3.8% y-o-y) were following Poland.

In value terms, Belgium ($175M), the Netherlands ($127M) and France ($82M) constituted the countries with the highest levels of imports in 2020, with a combined 50% share of total imports. Italy, Portugal, Germany, Spain and Poland lagged somewhat behind, comprising a further 41%.

In 2020, the brown rice import price in the EU amounted to $708 per tonne, picking up by +3.8% against the previous year. Prices varied noticeably by the country of destination; the country with the highest price was Germany ($940 per tonne), while Portugal ($499 per tonne) was amongst the lowest. In 2020, the most notable growth rate of prices was attained by Germany, while the other leaders experienced more modest paces of growth.

Total European Rice Imports

In 2020, the amount of rice imported in the EU amounted to 3.5M tonnes, increasing +10.2% compared with the year before. In value terms, rice imports spiked by +12.8% y-o-y to $2.9B in 2020.

France (627K tonnes), Belgium (611K tonnes), Germany (462K tonnes) and the Netherlands (399K tonnes) represented roughly 60% of total imports of rice in 2020. It was distantly followed by Portugal (218K tonnes), Italy (217K tonnes), Spain (210K tonnes) and Poland (205K tonnes), together making up a 24% share of total imports.

In value terms, France ($589M), Germany ($462M) and Belgium ($390M) appeared to be the countries with the highest levels of imports in 2020, together comprising 50% of total imports.

Source: IndexBox Platform

procurement women opportunities
3pls, Archives, Global Logistics, Global Trade Daily, Warehousing

Supply Chain Professions: Women’s Place Today?

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Despite the diversification of its professions and a recent and relative feminization, the supply chain remains predominantly male, especially the higher up the organization chart you go. We have gathered a panel of experts from the field and from education to understand how to make supply chain jobs more attractive to women and to remove the obstacles to the feminization of a sector that has strong recruitment needs:

 

 

Salomée Ruel: associate professor of information systems management and supply chain management at Kedge Business School;

 

Marie-Laurence Deruaz: Logistics Director at Suez Eau France

 

Anicia Jaegler: director of the Operations Management and Information Systems department and professor at the ISLI at Kedge Business school, delivers their analysis;

 

Just over 4 in 10 (41%) supply chain positions, according to the Gartner 2021 survey, are filled by women. These numbers are slowly changing, as Gartner reported an occupancy rate of 39% in 2020 and 33% in 2019. However, in executive positions, their share is only 17%, and decreasing. What are the persistent obstacles to this feminization? 

 

Anicia Jaegler: “Historically, logistics originated in the military world. Then, it was implemented in the industrial world and associated with transport and storage. This explains its masculinization. The supply chain, which is more recent, is slowly becoming more feminine, with very significant differences depending on the activity and sector”.

 

Salomée Ruel: “The operational functions of logistics – transport, handling, etc. – which make up the bulk of the troops, have less than 10% women. Conversely, in customer services, more than 9 out of 10 employees are women, but these profiles weigh little in the overall workforce.

 

The digitalization of the sector, which is pushing companies to recruit more “mathematical” profiles, does not seem to be conducive to the feminization of the sector, particularly in management positions, which are predominantly male.

 

This is related to the fact that it is a male world that has difficulty making room for women, but also to image problems generating a lack of attractiveness for some women”.

 

Marie-Laurence Deruaz: “The supply chain is often reduced in people’s minds to its “logistics” part, which is historically considered to be a man’s job, physical, with a lot of travel and staggered hours, considered to be very restrictive.

 

These stereotypes apply to recruiters, but also to female candidates, who tend to censor themselves. Fewer in number in training courses, they find it harder to take the plunge when applying.

 

My own team of about 60 employees who perform operational supply and package preparation duties includes six women”.

How can we make these jobs more attractive to women?

 

Anicia Jaegler: “The first action is the promotion of professions in industry, transport, e-commerce, etc. The supply chain is everywhere and its professions are very diverse. Several initiatives are moving in the right direction: a book for primary school children, a card game for high school girls, etc”.

 

Salomée Ruel: “We need to work on the image of these jobs. We must make it known that these jobs, considered as very manual and requiring muscles, have been largely facilitated by mechanization, which also relieves the men.

 

It should be noted that beyond logistics, the sector now encompasses a wide range of functions, around the management of the supply chain.

 

As a teacher, I insist on their transversal and strategic dimensions. We need more female teachers in logistics. At Kedge Business School, the Superior Institute of Industrial Logistics, where I teach, and the Msc “International Transport” are run by women. We have an educational role to play by training our female students in negotiation and leadership and by trying to change the way students view their colleagues.

 

This image work must be led by companies, but also by journalists and public authorities. 100% female events such as the “Global Women Supply Chain Leaders 2020″, organized by B2G Consulting, are starting to be set up.

 

Finally, in the locker room, change also means strict enforcement of the law that prohibits posters of naked women, which is considered sexual harassment. It may seem like anecdotal evidence, but it’s not always.”

 

Marie-Laurence Deruaz: “We also need an active HR policy on gender equality. At Suez, this means communicating to all employees about the stereotypes and discrimination that women may be subject to.

 

It is important that communication also highlights successful women and career opportunities.

 

Recently, we set up a women’s network to give them more visibility, to allow them to share experiences, but also to decipher codes and remove barriers that they sometimes put on themselves.

 

When I set up my team, I made sure to give both men and women a chance: two out of five site managers are women. On a daily basis, I encourage the teams to be open to this type of recruitment. We have some of the best female warehouse staff.

 

But these changes are not always without difficulties. It is also necessary to support the teams, as some members have difficulty recognizing the legitimacy of women managers. This requires open discussions with these employees to help them take a step back from what they are saying and what they think, but also support for the manager.

What are the benefits for a company to have a more active gender diversity policy?

 

Marie-Laurence Deruaz: “Diversity in the broadest sense of the word is an asset for the company. It is the variety of experiences, skills and points of view on the same problem that will make a team more efficient. And diversity is part of this. As long as you know how to agree to cross the views. I have noticed that teams with women leave more room for communication.

 

Anicia Jaegler: “The research conducted made it possible to link the presence of women and financial performance, sustainable performance and diversity.”

 

Salomée Ruel: “Women are more sensitive to issues of well-being in the workplace and to compliance with Quality, Health, Safety and Environment (QHSE) rules.

 

They are also more sensitive to the respect of suppliers’ codes of conduct; a key dimension at a time when consumers do not hesitate to boycott a brand that violates ethical rules. Finally, research has shown that in supply chain audit situations, teams led by women perform better and uncover more disputes and compliance issues.

 

Generix Group North America helps distribution & manufacturing companies achieve operational excellence with their WMS & MES  Supply chain solutions. We invite you to download our WMS Decision Making Guide  here.

This article originally appeared here. Republished with permission. 

food supply chain
Archives, Global Logistics, Global Trade Daily, International Trade

The Effect of Supply Chain Crisis on the Food Industry

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March 2020 marked the beginning of unprecedented times for businesses across the world. The COVID-19 pandemic has had deep socio-economic implications for the food industry. It has imposed sudden shocks across the food supply chain, affecting farm production, logistics, food processing, and market demand for food items.

US Food Supply Chain: Disruptions and Implications from COVID-19

The COVID-19 pandemic has brought a new set of challenges that have affected all industries globally. Similarly, the US food supply chain has been deeply impacted due to physical distancing and strict lockdowns. Here is a list of the major stakeholders affected by the pandemic:

Farmers

Since the beginning of the COVID-19 pandemic, farmers have faced distinct challenges like drop-in grain prices, unavailability of skilled labor, and an uncertain future. Farmers are also facing difficulties in managing excess produce, which is creating an imbalance in the supply chain.

Foodservice Distributors

The foodservice industry relies on foodservice distributors for a steady supply of food items. Due to COVID-19, foodservice distributors have been severely affected by supply chain issues and a decrease in demand from restaurants. COVID-19 restrictions and shutdowns led to a decrease in outbound orders. Even though there has been a steady supply of inventory from farmers or manufacturers, distributors still find it difficult to adjust to the sudden change in market dynamics. Foodservice distributors face challenges in storing excess inventory and making physical deliveries. Some distributors have been able to switch to online ordering and delivery services, but these methods are yet to be universally accepted by outlets.

Foodservice Producers

Foodservice producers have faced similar issues as distributors. The global supply chain crisis effect has led to some significant changes for the food industry. Plant utilization has been significantly lower for foodservice producers due to a decrease in demand from the foodservice industry. Most producers have equipment that is configured for delivering goods for the foodservice sector. Reconfiguring or recalibrating the equipment and changing the business model for the retail industry can be highly inefficient.

Consumer and Packaged-goods Companies

Retail manufacturers or packaged goods food businesses face huge challenges due to COVID-19. Even though demand has been steady for retail manufacturers, they have been facing unprecedented challenges. In the retail food manufacturing sector, employees work in close proximity with each other, leading to a spike in COVID-19 cases among workers. The recent surge in COVID-19 infections in meat-processing plants and other retail manufacturing factories has increased the chances of the mass closure of manufacturing plants.

Grocery Retailers

Among all types of food businesses, grocery retailers have witnessed the highest surge in demand. The primary challenge for grocery retailers has been to serve their customers in these challenging times. Grocery retailers and their employees have been overwhelmed with an increase in demand for food items. Additionally, retailers have been cleaning their stores throughout the day, paying hazard pay and huge incentives to adequately compensate staff for their efforts during the pandemic. Many grocery retailers have introduced online ordering and delivery solutions, which has led to a surge in revenue. This has also resulted in consumer complaints about delivery-related issues.

Effects of Pandemic on Food Supply Chain

The restrictions imposed on the foodservice industry due to the pandemic have hurt the food supply chain. Restrictions related to travel between cities, provinces, and countries have led to some significant challenges, affecting producers, consumers, distributors, farmers, and other stakeholders. Food processing units have become hotbeds for the pandemic. Due to the rapid rise in COVID-19 cases among employees, many manufacturing units had to shut their processing plants.

Effects of Pandemic on Consumer Behavior

The COVID-19 pandemic has affected the financial health of the average household as well. Due to financial issues, the food buying behavior of customers has changed drastically. Consumers currently prefer natural food items like vegetables, pulses, whole grains, and olive oil over different types of processed food items.

Effects of Pandemic on Global Food Trade

Food trade policies have also changed across the world. Many countries now restrict exports of essential food items for uninterrupted supply in the domestic market. Export restrictions have also led to a significant drop in prices, leading to losses for farmers or manufacturers.

Strategies for Food Supply Chain

A decentralized approach can be adopted by food manufacturers to avoid drawbacks and risks. Small-scale storage facilities near consumers can reduce storage and transportation costs significantly.

Recommendations to Minimize the Effect of COVID-19

The pandemic has seriously affected food safety, supply, nutrition, and financial health across the supply chain. Strict lockdowns and impositions have threatened the sustainability and growth of food businesses. Here is a list of recommendations that can minimize the effect of COVID-19 on food-related stakeholders:

Recommendations for Small Farmers

Countries can take measures to safeguard the health and finances of agricultural workers. Agri-produce collection centers near major locations can help small-scale farmers to minimize the loss of goods.

Suggestions for Government and Business

Governments can form a pandemic-handling committee to minimize the effects of the COVID-19 pandemic in the food supply chain. Business bodies can also develop advanced solutions and generate funds to help small suppliers, distributors, and retail outlets.

Businesses and individuals with a clear understanding of the challenges are better prepared in the current scenario. The current shifts in consumer spending habits have deeply affected economies across the world. These ripple effects of the pandemic have affected all stakeholders in the food supply chain, including distributors, producers, farmers, manufacturers, and retailers. Protecting their financial well-being and the general economic activity of the foodservice industry is integral to the economy’s recovery as the pandemic nears its end.

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 Author Bio: Damon Shrauner, Senior Sales Consultant and VP on B2B Sales at CKitchen, working in the food service equipment sector since 1994. With his expertise in market analysis, product placement, sales and project management, he will always tell you what to do for the best of your business.

disinfectant
Archives, Global Trade Daily, News

World Trade in Disinfectants Doubles to $ 6 Billion in 2020

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IndexBox has just published a new report: ‘World – Disinfectants – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Global disinfectant imports skyrocketed to $6B in 2020, rising more than twofold over the last year. In physical terms imports grew from 0.9M tonnes to 1.9M tonnes. In 2020, the U.S., Canada and Japan featured the largest purchases from abroad in value terms. America saw the highest growth rate of imports, increasing the volume of supplies ninefold. Japan, Hong Kong, Australia, the UK, Germany, Canada and France followed the U.S. in import growth per year. Germany, the U.S. and the UK constituted 39% of global export value last year. 

Global Disinfectant Imports by Country

In 2020, global disinfectant imports soared from 0.9M tonnes in 2019 to 1.9M tonnes in 2020. In value terms, disinfectant imports surged from $2.5B to $6B (IndexBox estimates) in 2020.

In value terms, the largest disinfectant importing markets worldwide were the U.S. ($770M), Canada ($549M) and Japan ($498M), together comprising 31% of global imports.

The countries with the highest levels of disinfectant imports in 2020 were the U.S. (244K tonnes), Germany (188K tonnes), Canada (155K tonnes), France (136K tonnes), Japan (134K tonnes), the UK (119K tonnes) and Australia (87K tonnes), together recording 55% of total import. Hong Kong SAR (51K tonnes), Belgium (47K tonnes), the Netherlands (37K tonnes), China (36K tonnes), Spain (35K tonnes), and Austria (33K tonnes) occupied a minor share of total imports.

The U.S. saw the highest growth rate of purchases. America boosted its imports by nine times, from 26K tonnes in 2019 to 244K tonnes in 2020. In value terms, U.S. imports grew from $87M to $770M over this period.

In 2020, Japan and Hong Kong increased purchases from abroad by seven times. Australia, the UK, Germany boosted the imports threefold, while Canada and France saw a twofold-increase in supplies to their countries.

In 2020, the average disinfectant import price amounted to $3,062 per tonne, up by +13% against the previous year. Prices varied noticeably by the country of destination; the country with the highest price was China ($5,227 per tonne), while the UK ($2,142 per tonne) was amongst the lowest. In 2020, the Netherlands attained the most notable rate of growth in terms of prices, while the other global leaders experienced more modest paces of growth.

World’s Largest Disinfectant Exporters

In value terms, Germany ($654M), the U.S. ($497M) and the UK ($341M) constituted the countries with the highest levels of exports in 2020, with a combined 39% share of global exports. These countries were followed by Spain, France, Belgium, the Netherlands, Canada, China, the Czech Republic, Poland, Denmark and Costa Rica, which accounted for a further 34%.

The shipments of the twelve major exporters of disinfectants, namely Germany, the U.S., Spain, France, Belgium, the UK, the Netherlands, China, Canada, Poland, the Czech Republic and Costa Rica, represented more than two-thirds of total export. Denmark took a minor share of total exports.

Source: IndexBox Platform

Phenol
Archives, Global Trade Daily, News

Chinese Phenol Imports Soar Over $1.7B

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IndexBox has just published a new report: ‘China – Phenols – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2020, China boosted its phenol imports by +20% y-o-y to 1.5M tonnes. In value terms, they exceeded $1.7B. South Korea, Taiwan and Thailand constitute the key phenol suppliers to China, with a combined 58%-share of the total imports. Taiwan, the U.S., Thailand and Japan expanded their exports to China, while shipments from South Korea dropped in 2020.

Chinese Phenol Imports

In 2020, approx. 1.5M tonnes of phenols were imported into China; growing by +20% against the year before. In value terms, phenols imports grew by +3.5% y-o-y to $1.7B (IndexBox estimates) in 2020.

South Korea (302K tonnes), Taiwan (302K tonnes) and Thailand (249K tonnes) were the main suppliers of phenols imports to China, together comprising 58% of total imports.

Taiwan (+95% y-o-y), the U.S. (+82% y-o-y), Thailand (+32% y-o-y) and Japan (+10% y-o-y) saw the highest increases in export volume to China in 2020. By contrast, purchases from South Korea reduced by -15% y-o-y.

In value terms, the largest phenols suppliers to China were South Korea ($319M), Taiwan (Chinese) ($294M) and Thailand ($237M), together accounting for 49% of total imports.

In 2020, the average phenols import price amounted to $1,183 per tonne, waning by -13.8% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was the U.S. ($1,891 per tonne), while the price for Saudi Arabia ($712 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Japan, while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

delivery
Archives, EU Trade, Global Trade Daily

Has COVID-19 Changed the French Food Delivery Market Forever?

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The French food delivery market is hugely lucrative, worth €180 billion and growing. Food makes up 20% of our manufacturing output, highlighting its economic importance.

The market was flipped on its head during the COVID-19 pandemic, which saw restaurants, cafes, and bars close their doors and demand for deliveries rise.

Electrix, a producer of coffret électrique encastré for the food industry, explores how the pandemic has changed consumer needs and how the market could look in the coming months.

Our Changing Food Delivery Habits

The COVID-19 pandemic has changed the world. As businesses closed their front doors and we were confined to our homes, consumer behavior changed.

People were forced to turn to online shopping for non-essential items, but many also began to shop online for critical supplies, like groceries. Takeaway food deliveries increased as people sought comfort in delicious restaurant food at home. 29% of French households were already getting meals delivered to their home regularly, which naturally increased when we were unable to go out.

We were seeing a shift towards eating out before the pandemic. In 2019, there was an 8.5% increase in people eating outside the home, whether that was in bars, restaurants, or cafes. 48% of people said this was the activity they were most eager to get back to, scoring it higher than seeing family and friends or attending events.

Fast Grocery Delivery will Become the Norm

Demand for grocery deliveries rose as people sought to avoid contracting the virus in shops. Stores struggled to keep up with this demand initially, but they soon adapted. Because of this huge response, we’re now seeing companies offer grocery deliveries in as little as 15 minutes across the country. Interestingly, this activity reached a new high in Europe in the first quarter of 2021 rather than during the first lockdown.

Cajoo, the first French company to offer immediate grocery deliveries, put itself up for sale as its competition rose quickly. It went from being an innovator to one of many businesses offering the same services in an instant, so high is the demand for fast food shopping deliveries.

It’s important to note that these operations are expensive and require multiple locations. Cajoo committed to paying its drivers a salary, while we’ve seen other providers cut delivery costs in order to remain more profitable, which can impact driver earnings. One thing is for sure – fast grocery delivery is here to stay.

Will People Dine out More Again?

While lockdown restrictions have eased, capacity in restaurants, bars, and cafes is still limited as the vaccine rollout continues. We know that eating out is the activity the French public has missed the most during the lockdown, but we’re seeing mixed results on people returning to restaurants.

In December 2020, a survey was released on our intentions to dine out after lockdown restrictions were eased, and the results were surprising. 51% of respondents said they intended to dine out less than usual, while 35% said they’d do it as much as they had prior to the pandemic. While many restaurants have been fully booked since reopening, the hospitality industry union UMIH has estimated that the recent introduction of green passes could reduce visitor numbers by 15–20%.

It’s clear that we’re taking precautions as France continues its roadmap out of lockdown. While visits to restaurants after the easing of restrictions exceeded 2019 levels by 50%, consumers are currently dining out less. We expect this trend to continue in the coming months because of the backlash to the COVID pass, despite the fact that dining out is a much-loved activity in the country.

Fast Food Delivery will Get More Competitive

As people ordered more fast food through the pandemic, delivery services increased fiercely. Uber Eats has long dominated the takeaway delivery market in France, but we saw Deliveroo triple its subscribers by offering unlimited deliveries for a small initial fee of 1€, rising to only 5.99€ at the end of 2020.

When France fully exits from lockdown restrictions – whenever that may be– we may see a decline in fast food delivery orders. The pandemic increased competition between the providers of these services as they looked to capitalize on increased demands, but we may see even more discounts as spend in this area inevitably drops.

A Backlash to Competitiveness?

With competition at an all-time high in the food delivery market, we’re seeing businesses undercut themselves and each other to gain key market shares, such as the low delivery prices offered by Deliveroo. We know that this can impact the earnings of its drivers, so could we also see a backlash to this type of ruthless competitiveness? Just Eat, which has a smaller share in the market, hired 4,500 drivers on permanent contracts in order to build and an ethical brand.

Values matter to French consumers, and half wouldn’t continue to buy from a business that didn’t have similar values to them. We could see businesses that take an ethical stance increase their market share.

There’s no doubt that the past 18 months have shifted consumer behaviors in a way we never expected, and this will impact the future of the market. The food delivery market in France is highly valuable, and we’re seeing new trends emerge as a result of our changing habits.

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Sources

https://blog.paylead.fr/the-pandemic-ignites-a-food-delivery-war-in-france/

https://www.statista.com/statistics/1103928/coronavirus-restaurant-visitation-impact/

https://www.la-croix.com/Economie/Restauration-cafes-Le-passe-sanitaire-pourrait-entrainer-baisse-frequentation-15-20-2021-08-09-1201170029

https://www.statista.com/statistics/1242287/restaurant-visits-by-french-covid-19-pandemic/

https://www.bloomberg.com/news/articles/2021-07-22/grocery-delivery-shakeout-pushes-france-s-cajoo-to-explore-sale

https://www.kantarworldpanel.com/global/News/How-the-French-Food-Market-Changed-in-2019

https://www.eurostartentreprises.com/en/business-advice/five-reasons-you-should-start-a-food-business-in-france

https://sifted.eu/articles/food-delivery-startups-europe/

https://santandertrade.com/en/portal/analyse-markets/france/reaching-the-consumers

https://www.eurostartentreprises.com/en/business-advice/five-reasons-you-should-start-a-food-business-in-france

https://blog.paylead.fr/the-pandemic-ignites-a-food-delivery-war-in-france/

https://www.france24.com/en/france/20201125-as-they-reopen-with-fresh-restrictions-french-businesses-rely-on-new-avenues-to-drive-sales

https://dealroom.co/uploaded/2020/06/Food-Tech-Prez-FINAL.pdf

https://www.connexionfrance.com/French-news/Coronavirus-Daily-updates-on-the-situation-in-France

https://www.thelocal.fr/20210518/fully-booked-for-a-month-frances-bars-and-cafes-prepare-to-reopen-after-six-months-of-closure/

https://www.ceicdata.com/en/france/consumer-survey

https://fortune.com/2020/05/20/amazon-warehouse-shutdown-france/

Afghanistan
Archives, Global Trade Daily, Imports/Exports, News

China Is Unlikely to Tap into Afghanistan’s Resources to Strengthen Its Position in the Global Lithium Market

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IndexBox has just published a new report: ‘China – Lithium Carbonate – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Although China is the second-largest importer of lithium carbonate in the world, it dominates globally in exports for lithium oxide and lithium hydroxide. With moderate lithium deposits, the country will need to find ways to expand its resource reserves to support the rapid development of its electric car and electronics industries. It is widely viewed that China will construct lithium mining facilities in Afghanistan, but this is very unlikely in the near future due to the difficult military and political situation there.

Key Trends and Insights

China remains the second-largest importer of lithium carbonate worldwide but dominates globally in lithium oxide and hydroxide exports. According to IndexBox, in 2020, China’s market share consisted of 57K tonnes or 67% of worldwide exports. South Korea and Japan were the main importers of Chinese lithium.

Lithium production in China grew from 10.8K tonnes of lithium content in 2019 to 14K tonnes in 2020. According to USGS estimates, China stands in fourth place globally for lithium reserves (1.5M tonnes of lithium content), behind Chile (9.2M tonnes), Australia (4.7M tonnes) and Argentina (1.9 M tonnes).

The rapidly developing electric car and electronics industries in China will require enlarging their resource reserves to meet production needs. Alternative methods to increase their mineral reserves could include expanding domestic excavation, building mining facilities abroad or expanding lithium imports.

Recently in China, there have been discussions about creating a mining facility in Afghanistan for rare earth metals to provide one means of expanding their resource reserves. Implementation of such a project in the near future is highly unlikely, mostly due to the difficult military and political situation in the country. Mes Aynak in Afghanistan, one of the world’s largest copper deposits, serves as a precedent, where China invested in mining operations. In 2008, the Chinese Company MCC-JCL Aynak Minerals (MJAM) received a permit to rent and develop the ore, but to this day they haven’t begun to extract nor smelt the ore. Currently, the project remains within an exploration phase. The main reasons for the facility’s stalled construction are threats of armed conflict in Afghanistan and a shortage of necessary resources such as coal and phosphate.

There are no reliable sources of data about Afghanistan’s lithium deposits. According to estimates from the Afghanistan Ministry of Mines and Petroleum, there are 1.4M metric tonnes of rare earth elements in the country. There is no open-source information detailing whether those minerals are accessible for the extraction or whether they are contaminated by radioactive elements. At the moment, there are no active mining operations for lithium in Afghanistan. The mining industry is significantly under-developed there, and due to a low GDP, the only method to stimulate growth is foreign investment.

Currently, the Belt and Road Initiative should enable China to strengthen its leading position in the global lithium export market. The initiative’s main goal is to construct a unified large market among countries in Asia Pacific, Africa as well as Central and Eastern Europe. It should help China increase exports of lithium as well as increase imports of crude ores when necessary. Within the Belt and Road Initiative, China has invested in transport and logistics infrastructure in Sri Lanka, Pakistan, Bangladesh, Nepal and Afghanistan.

Lithium Carbonate Imports into China

In value terms, lithium carbonate imports expanded sharply by +8.5% to $261M (IndexBox estimates) in 2020. In physical terms, lithium carbonate imports into China reached 50K last year.

Chile (37K tonnes) constituted the largest lithium carbonate supplier to China, with a 74% share of total imports in 2020. Moreover, lithium carbonate imports from Chile exceeded the figures recorded by the second-largest supplier, Argentina (13K tonnes), threefold.

The average lithium carbonate import price stood at $5,208 per tonne in 2020, falling by -36.5% against the previous year. Average prices varied noticeably amongst the major supplying countries. In 2020, the country with the highest price was Argentina ($5,922 per tonne), while the price for Chile stood at $4,889 per tonne. In 2020, the most notable rate of growth in terms of prices was attained by Argentina.

Lithium Oxide and Hydroxide Exports from China

In value terms, South Korea ($357M) and Japan ($313M) constituted the largest markets for lithium oxide and hydroxide exported from China worldwide.

Lithium oxide and hydroxide exports from China skyrocketed to 57K tonnes in 2020, picking up by +16% against the previous year. In value terms, lithium oxide and hydroxide exports declined slightly to $688M (IndexBox estimates) in 2020.

South Korea (29K tonnes) and Japan (26K tonnes) were the main destinations of lithium oxide and hydroxide exports from China. In 2020, the most notable growth rate regarding the volume of shipments, amongst the main countries of destination, was attained by South Korea (+68% y-o-y).

The average lithium oxide and hydroxide export price stood at $12,120 per tonne in 2020, which is down by -15.2% against the previous year. Average prices varied noticeably for the major overseas markets. In 2020, the country with the highest price was South Korea ($12,491 per tonne), while the average price for exports to Japan totaled $11,968 per tonne. In 2020, the most notable growth rate in terms of prices was recorded for supplies to Japan.

Source: IndexBox Platform

biscuits
Archives, Global Trade Daily, News

The U.S. Boosts Sweet Biscuit Imports

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IndexBox has just published a new report: ‘U.S. – Sweet Biscuits Without Chocolate – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

American sweet biscuit imports jumped by +7% y-o-y to 561K tonnes in 2020. In value terms, the purchases from abroad stood at $1.4B. Last year, Mexico remained the largest supplier to the U.S., comprising 70% of the American sweet biscuit imports. Among other major exporters, India saw the highest increase in biscuit shipments to the U.S. The average sweet biscuit import price in America dropped by -7.7% against the previous year.

U.S. Sweet Biscuit Imports

Sweet biscuit imports into the U.S. rose notably to 561K tonnes in 2020, increasing by +7% against the year before. In value terms, sweet biscuit imports stood at $1.4B (IndexBox estimates) in 2020.

In 2020, Mexico (391K tonnes) constituted the largest supplier of sweet biscuits to the U.S., with a 70% share of total imports. Moreover, sweet biscuits imports from Mexico exceeded the figures recorded by the second-largest supplier, Canada (77K tonnes), fivefold. The third position in this ranking was occupied by India (14K tonnes), with a 2.5% share.

In 2020, the average annual rate of growth in terms of volume from Mexico amounted to +13.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Canada (-2.2% per year) and India (+23.7% per year).

In value terms, Mexico ($658M), Canada ($332M) and Denmark ($52M) constituted the largest sweet biscuit suppliers to the U.S., with a combined 76% share of total imports. India lagged somewhat behind, accounting for a further 2.1%.

In 2020, the average sweet biscuit import price amounted to $2,442 per tonne, declining by -7.7% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Denmark ($5,603 per tonne), while the price for Mexico ($1,681 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by India, while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

3D printing
Archives, Global Logistics, Global Trade Daily

Metal 3D Printing Alleviating Supply Chain Weaknesses Exposed by Pandemic

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The COVID-19 pandemic has exposed weaknesses in the global supply chain, and 3D printing is helping to fix the problem – transforming manufacturing in the process.

Supply chain disruptions were up 67 percent year-over-year in 2020, with those caused by the pandemic accounting for the most damage, according to an annual report from supply chain risk monitor Resilinc. A year and a half into this unprecedented period and we’re reaching an inflection point that’s reverberating across the world in the form of supply shortages and delays for key components. Companies’ earnings are being hit by supply chain delays.

So many businesses have found themselves uncomfortably exposed to supply chain risks outside of their control, which has delayed the release of products and led to soaring prices weighing heavily on their bottom lines. The pandemic has driven home the need for manufacturing solutions that can be more easily managed and scaled internally.

As metal 3D printing has gotten more ubiquitous and affordable, with companies capable of printing everything from medical tools to auto parts, there’s opportunity for businesses to lessen their reliance on the fragile global supply chain. By manufacturing components closer to home through additive manufacturing, companies can shift to a more localized, on-demand method of manufacturing. They can save time, money and return jobs from offshore sites.

Companies like 3DEO, a leader in mass production of metal 3D printed parts, introduced the Manufacturing Cloud and additive printing technologies enable OEMs to keep closer tabs on their production lines so that they can respond in real-time to fluctuations in demand, thereby circumventing the external risks affecting supply chains. By tweaking product development through an integrated platform, companies are able to quickly shift logistics to better address the rapidly evolving situation on the ground. This is particularly important when dealing with a product that has a lot of different metal components, which are oftentimes sourced from around the world.

Some companies in 2020 and 2021 found themselves having to delay entire product launches and shipments because of a single component caught in the clog of the supply chain. 3D printing technologies offered a way out, so they could get back to business faster with competitive pricing that differentiated them from the competition. 3DEO has scaled metal 3D printing to unprecedented levels, and even competes with traditional manufacturing like CNC machining and metal injection molding, even in high production volumes. The company shipped its millionth production part in July, saving many of its customers from these supply chain woes.

Companies that have started to make the shift to additive manufacturing in recent years are reporting huge time and money savings. Ford began testing large-scale 3D printing of certain car parts in 2017 and says rapid manufacturing has changed the way its engineers develop and test cars by reducing the burden of sourcing required components. What once took four months and $500,000 to produce and source a prototype, now takes just four days a few thousand dollars through 3D printing. “You can come up with a really optimized part at the end of the day,” says Paul Susalla, section supervisor of Rapid Manufacturing at Ford. “That’s all because of the speed with which we can produce the prototype parts without tooling.” These aren’t just irrelevant car parts, either; they’re quality. Some of Ford’s 3D-printed components have garnered hundreds of thousands of miles and crash-tested at 70 mph, which the automaker says has resulted in higher-quality vehicles at a more affordable price point.

Being able to produce components at home helps shift to a more on-demand mindset, which is crucial when responding to day-to-day fluctuations in needs. It also helps a company save money, both through reduced time requirements and costs for shipping and storage of spare and rare parts. Shifting from mass production in cheap, foreign places to local on-demand assembly hubs fueled by new metal 3D printing technologies, manufacturers can produce only what they need. Data from DHL shows that hundreds of millions of spare parts for products as diverse as cars to watches and x-ray machines are stuck in storage at any given time across the world. Some of these are rarely used and may never be needed, which is a costly burden that builds inefficiency into a company’s supply chain. Case studies estimate that the actual share of excess inventories can sometimes exceed 20%, with inventory supplied and stored with no guarantee it will ever move off the shelf. Additive manufacturing can help eliminate that risk by shifting to an as-needed production model, so that they’re only produced upon proof of demand.

The future of manufacturing is on-demand and real-time. For example, 3DEO’s Manufacturing Cloud allows real-time scaling to meet evolving needs. Companies can quickly scale up or wind down in real-time depending on normal fluctuations because they maintain total control of the additive manufacturing process, enabling them to adapt more efficiently thereby increasing competitive advantages with time and cost. Mass disruptions in the supply chain, such as those caused from the COVID-19 pandemic, directly correlate with price increases. Companies that bring component manufacturing in-house through 3D printing are able to produce items faster and more affordably, reducing those risks and undercutting competitors still handcuffed to traditional manufacturing. An MIT analysis suggests that 3D printing could reduce total supply chain costs by 50-90% as production moves from make-to-stock offshore facilities that require a heavy reliance on freight to make-on-demand facilities located closer to the final customer.

Additive manufacturing solutions represent a new kind of industrial revolution at a time when the supply chain’s weaknesses are directly imposing on company operations. Vast savings in the form of time and money are rewarded to those willing to shift to a 3D printing methodology. New efficiencies in the supply chain can be unlocked, minimizing risk factors like COVID-19.

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About the Author: Matt Sand received three bachelor’s degrees from Tulane University in Computer Science, Mathematics, and Political Science. Upon graduation, he joined the U.S. Air Force as a Communications Officer. While stationed at Edwards Air Force Base in California, Matt ran a team of 23 and was responsible for all core IT services. Matt then received his MBA from UCLA Anderson with a focus in entrepreneurship. Soon after graduating, he co-authored a book, The Agile Startup, with a professor of entrepreneurship. The book was published by Wiley & Sons in 2013. Since receiving his MBA, Matt has played a variety of roles across the entrepreneurial ecosystem. He has founded or co-founded several startup companies, invested in early-stage companies at two Southern California-based venture funds, taught entrepreneurship courses at UCLA and LMU, and consulted with dozens of innovative companies of all sizes.